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currencies involved in our business, foreign currency positions partially offset and are netted against one another<br />
to reduce exposure, we cannot assure you that fluctuations in foreign currency exchange rates will not make these<br />
products more expensive to purchase. Increases in our cost of purchasing these products could negatively impact<br />
our financial results if we are not able to pass those increased costs on to our customers.<br />
Our operations could be harmed by factors including political instability, natural disasters, fluctuations in<br />
currency exchange rates and changes in regulations that govern international transactions.<br />
The risks inherent in international trade may reduce our international sales and harm our business and the<br />
businesses of our distributors and suppliers. These risks include:<br />
• changes in tariff regulations;<br />
• political instability, war, terrorism and other political risks;<br />
• foreign currency exchange rate fluctuations;<br />
• establishing and maintaining relationships with local distributors and dealers;<br />
• lengthy shipping times and accounts receivable payment cycles;<br />
• import and export licensing requirements;<br />
• compliance with foreign laws and regulations, including unexpected changes in taxation and regulatory<br />
requirements;<br />
• greater difficulty in safeguarding intellectual property than in the United States; and<br />
• difficulty in staffing and managing geographically diverse operations.<br />
These and other risks may, among other things, increase the relative price of our products compared to those<br />
manufactured in other countries, reducing the demand for our products.<br />
Our business could be adversely affected by a strike or work stoppage at one of our manufacturing plants or at<br />
a facility of one of our significant customers or at a common carrier or major shipping location.<br />
Certain of our automotive customers are unionized and may incur work stoppages or strikes. A work<br />
stoppage at our facilities or those of our automotive customers, or at a common carrier or major shipping<br />
location, could have a material adverse effect on our sales, earnings and financial condition. The risk of issues of<br />
this type at our facilities may be exacerbated by the implementation of our STEP Change program, which<br />
involves significant staff reductions and facility relocations.<br />
Obligations to correct product defects covered by our warranties could adversely affect our financial results.<br />
We warrant our products to be free from defects in materials and workmanship for periods ranging from six<br />
months to six years. Costs to correct product defects may exceed our estimates and adversely affect our results of<br />
operations and financial condition.<br />
If we are unable to enforce or defend our ownership and use of our intellectual property, our business may<br />
decline.<br />
Our future success will depend, in substantial part, on our intellectual property. We seek to protect our<br />
intellectual property rights, but our actions may not adequately protect the rights covered by our patents, patent<br />
applications, trademarks and other proprietary rights and prosecution of our claims could be time consuming and<br />
costly. In addition, the intellectual property laws of some foreign countries do not protect our proprietary rights,<br />
as do the laws of the United States. Despite our efforts to protect our proprietary information, third parties may<br />
obtain, disclose or use our proprietary information without our authorization, which could adversely affect our<br />
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